Posted: June 11th, 2021

**Amazon company is considering opening a new branch in Saudi Arabia, and they need to choose the best location to sale a volume of (2,000) units per month for each branch, the expected selling price per unit is (SR 120).**

The selected locations are three locations according to the data for each one:- Dammam, the fixed cost is (SR 30,000), variable cost (SR75)
- Riyadh, the fixed cost is (SR 60,000), variable cost(SR 45)
- Jeddah, the fixed cost is (SR 110,000), variable cost(SR 25)
**Calculate the following****:**- The total cost at each location.
- Graph the total cost line for each location.
- The profit at the lowest cost location
- Over what range of monthly volume is each facility going to have a competitive advantage?
- What is the volume at the intersection points between the deferent locations cost lines?

**Question 25 PointsAl Baik restaurant plans to have a distribution location to serve four restaurants located according to the coordinate data and shipping volume to each one:**- Jeddah branch located at coordinate (5,6), the shipped volume (2,000)
- Tabuk branch located at coordinate (3,12), the shipped volume (2,000)
- Hail branch located at coordinate (13,13), the shipped volume (1,000)
- Riyadh branch located at coordinate (9,11), the shipped volume (1,000)
**By using the center of gravity method, what should be the**?**coordinate location of the distribution center**

**Question 35 PointsSubway company plans to open a new branch, and they need to choose a proper location between three regions according to the following factors:**- Makkah with score of (Space= 60), (Cost= 50), (Traffic density= 55), (Neighborhood income = 40), (Zoning laws=20).
- Riyadh with score of (Space= 120), (Cost= 90),(Traffic density= 80), (Neighborhood income = 60), (Zoning laws=50).
- Dammam with score of (Space= 70), (Cost= 60), (Traffic density= 55), (Neighborhood income = 40), (Zoning laws=20).
- The weight for each factor is (Space= 0.30), (Cost=0.25), (Traffic density= 0.20), (Neighborhood income = 0.15), (Zoning laws=0.10).
**At which region should Subway open the new branch****?**

**Question 45 PointsSharp company needs to reduce their inventory cost by determining the optimal quantity of material to be obtained per order, the company operates 200 day-working year according to the following data:**- -The annual demand is (1000 units)
- The ordering cost is (SR 10) per order.
- -The holding cost per unit is (SR 50)
- -Daily production rate is (8 units daily)
- -Daily demand rate is (4 units daily)
**Calculate the following:**- The optimal quantity of material to be obtained per order
- The minimum total cost for the inventory
- The expected numbers of orders
- The expected time between the orders
- The optimal production quantity

**Question 55 PointsAn apple store has a demand for (8,000) iPhones per year, the firm operates a 250 day- working year, the average delivery of an order takes (3 working days).****Calculate the following:**- The demand rate
- The lead time
- The reorder point without safety stoke
- The reorder point with one day safety stoke

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